CEE & Turkey
United States sanctions against two Turkish government ministers triggered the recent bout of volatility in the Turkish currency market. While Turkey was fundamentally vulnerable to begin with, due to a lengthy period of bad economic policies, the fact that volatility was so severe and spread far beyond Turkey indicates that this was not just about Turkey. It is also about the major shift in America’s use of soft power on the global stage.
With Turkey seemingly approaching a critical junction in its economic trajectory, a call with the country’s Minister of Finance sheds light on how the country looks to tackle the rising challenges confronting it. Manulife analyst Richard Segal shares the details.
Branko Drcelic, Director of the Public Debt Administration at the Ministry of Finance, Serbia sat down with Bonds & Loans to discuss how the country moved from chronic deficits to a healthy surplus, catalysing a local currency debt capital market in the process.
Turkey’s healthcare industry has moved forward leaps and bounds since the government overhauled the sector in 2003, and the present currency dynamics coupled with high external savings rates and a huge concentration of domestic medical expertise has translated more recently into a health tourism boom – a bright beacon floating in troubled waters. Bonds & Loans speaks with Burcu Öztürk, CFO of MLP Care, a hospital operator, about how the current economic conditions in Turkey have influenced the company’s approach to the markets and its balance sheet.
The Central Bank of Turkey recently published its financial stability report and it tells us a lot about the economic risks and opportunities moving forward more broadly. Manulife analyst Richard Segal provides a digest of the report and assesses the implications for Turkey’s economy.
With a landmark national election in Turkey now having come to pass, we speak with Naz Masraff, Director for Europe at Eurasia Group, a leading political risk consultancy, about the policy mix needed to lift the country out of a tough economic situation.
It has been a tough start to the year for emerging market bonds, but things are looking up as we head into 2H 2018 – you just need to know where to look.
Turkey has been making headlines over the last six months, rarely for enviable reasons – a large current account deficit, low interest rates and wobbly fundamentals culminated in the lira becoming the second cheapest EM currency in mid-May. Following the snap elections called last month, Bonds & Loans headed to Istanbul to look beyond the headlines and get some perspective from issuers and investors.
Following up on its recent “double bill” international bond, the former Soviet republic hit the market again at a tough time, but the notes proved popular with international investors and saw some of the highest oversubscription levels in the sovereign space over the past year.
As Turkey's Central Bank finally responds to the plight of Turkish lira with a 300bp overnight rate hike, Renaissance Capital's global chief economist Charlie Robertson looks back at how the country got itself into this pickle - and some of the possible solutions that could boost the economy.
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18 Oct 2018